Dream Chasers, Representing 9.7% of Carver Bancorp Shares, Urges Shareholder Support of Two New Board Nominees
Dream Chasers, holding 9.7% of Carver Bancorp shares, has urged shareholders to support two new board nominees, Jeffrey Anderson and Jeffrey Bailey, at the upcoming December 12, 2024, annual meeting.
In a letter to shareholders, Dream Chasers highlighted Carver's poor performance under the current board, noting an 80% stock price decline over the past decade and only one profitable fiscal year. They emphasized Carver's underperformance against the bank index by 237% over ten years and significant financial losses, including a $3 million loss in fiscal year 2024.
Dream Chasers criticized the entrenched board, which holds minimal shares and appears disconnected from shareholder interests. They proposed Anderson and Bailey, citing their extensive financial expertise and alignment with shareholder perspectives. Dream Chasers also outlined a growth strategy for Carver, including expanding wealth-building services and improving marketing and technology efforts.
Dream Chasers, detentrice del 9.7% delle azioni di Carver Bancorp, ha invitato gli azionisti a sostenere due nuovi candidati per il consiglio di amministrazione, Jeffrey Anderson e Jeffrey Bailey, nella prossima assemblea annuale del 12 dicembre 2024.
In una lettera agli azionisti, Dream Chasers ha evidenziato la scarsa performance di Carver sotto l'attuale consiglio, notando un calo del 80% del prezzo delle azioni nell'ultimo decennio e solo un anno fiscale redditizio. Hanno sottolineato il sotto rendimento di Carver rispetto all'indice bancario, con un divario del 237% negli ultimi dieci anni e ingenti perdite finanziarie, inclusa una perdita di 3 milioni di dollari nell'anno fiscale 2024.
Dream Chasers ha criticato il consiglio dirigenti, che detiene un numero minimo di azioni e appare distaccato dagli interessi degli azionisti. Hanno proposto Anderson e Bailey, citando la loro vasta esperienza finanziaria e l'allineamento con le prospettive degli azionisti. Dream Chasers ha anche delineato una strategia di crescita per Carver, che include l'espansione dei servizi di costruzione di ricchezza e il miglioramento degli sforzi di marketing e tecnologia.
Dream Chasers, que posee el 9.7% de las acciones de Carver Bancorp, ha instado a los accionistas a apoyar a dos nuevos nominados para la junta, Jeffrey Anderson y Jeffrey Bailey, en la próxima reunión anual del 12 de diciembre de 2024.
En una carta a los accionistas, Dream Chasers destacó el pobre rendimiento de Carver bajo la junta actual, señalando una caída del 80% en el precio de las acciones en la última década y solo un año fiscal rentable. Enfatizaron el bajo rendimiento de Carver en comparación con el índice bancario, con un rezago del 237% en diez años y pérdidas financieras significativas, incluyendo una pérdida de 3 millones de dólares en el año fiscal 2024.
Dream Chasers criticó a la junta arraigada, que posee acciones mínimas y parece desconectada de los intereses de los accionistas. Propusieron a Anderson y Bailey, citando su extensa experiencia financiera y su alineación con las perspectivas de los accionistas. Dream Chasers también esbozó una estrategia de crecimiento para Carver, que incluye la expansión de servicios de construcción de riqueza y la mejora de esfuerzos de marketing y tecnología.
드림 체이서스는 카버 뱅콥의 9.7%의 주식을 보유하고 있으며, 2024년 12월 12일에 열리는 연례 회의에서 두 명의 새로운 이사 후보인 제프리 앤더슨과 제프리 베일리를 지지할 것을 주주들에게 촉구했습니다.
드림 체이서스는 주주들에게 보낸 서한에서 카버가 현재 이사회 아래에서 저조한 성과를 내고 있으며, 지난 10년 동안 주가가 80% 하락하고 단 한 번의 수익성 있는 회계연도만 있었다고 강조했습니다. 그들은 카버가 10년 동안 은행 지수 대비 237%의 저조한 성과를 보였고, 2024 회계연도에는 300만 달러의 손실을 포함한 상당한 재정 손실을 입었다고 지적했습니다.
드림 체이서스는 적은 주식을 보유하고 주주들의 이익과 동떨어져 있는 고착화된 이사회를 비판했습니다. 그들은 앤더슨과 베일리를 제안하며, 이들의 광범위한 금융 전문성과 주주 관점과의 일치를 언급했습니다. 드림 체이서스는 또한 카버의 성장 전략을 개요로 하며, 부의 축적 서비스 확대와 마케팅 및 기술 활동 개선을 포함했습니다.
Dream Chasers, détenant 9,7% des actions de Carver Bancorp, a exhorté les actionnaires à soutenir deux nouveaux candidats au conseil d'administration, Jeffrey Anderson et Jeffrey Bailey, lors de la prochaine assemblée annuelle du 12 décembre 2024.
Dans une lettre aux actionnaires, Dream Chasers a mis en avant la mauvaise performance de Carver sous l'actuel conseil d'administration, notant une baisse de 80% du prix des actions au cours de la dernière décennie et seulement une année fiscale rentable. Ils ont souligné la mauvaise performance de Carver par rapport à l'indice bancaire, avec un écart de 237% sur dix ans et des pertes financières significatives, y compris une perte de 3 millions de dollars pour l'exercice 2024.
Dream Chasers a critiqué le conseil d'administration en place, qui détient un nombre minimal d'actions et semble déconnecté des intérêts des actionnaires. Ils ont proposé Anderson et Bailey, citant leur vaste expertise financière et leur alignement avec les perspectives des actionnaires. Dream Chasers a également décrit une stratégie de croissance pour Carver, comprenant l'expansion des services d'accumulation de richesse et l'amélioration des efforts de marketing et de technologie.
Dream Chasers, die 9.7% der Carver Bancorp -Aktien hält, hat die Aktionäre aufgefordert, die beiden neuen Kandidaten für den Vorstand, Jeffrey Anderson und Jeffrey Bailey, auf der bevorstehenden Hauptversammlung am 12. Dezember 2024 zu unterstützen.
In einem Schreiben an die Aktionäre hob Dream Chasers die schlechte Leistung von Carver unter dem aktuellen Vorstand hervor und stellte einen Rückgang des Aktienkurses um 80% im letzten Jahrzehnt sowie nur ein profitables Geschäftsjahr fest. Sie betonten die Underperformance von Carver im Vergleich zum Bankenindex um 237% über zehn Jahre und erhebliche finanzielle Verluste, einschließlich eines Verlusts von 3 Millionen Dollar im Geschäftsjahr 2024.
Dream Chasers kritisierte den etablierten Vorstand, der nur wenige Aktien hält und anscheinend von den Interessen der Aktionäre entfremdet ist. Sie schlugen Anderson und Bailey vor und verwiesen auf ihre umfassende Finanzexpertise und Übereinstimmung mit den Perspektiven der Aktionäre. Dream Chasers skizzierte auch eine Wachstumsstrategie für Carver, die die Erweiterung von Vermögensaufbau-Dienstleistungen sowie die Verbesserung von Marketing- und Technologieanstrengungen umfasst.
- None.
- Carver Bancorp's stock price has declined by 80% over the past decade.
- The company has reported nearly $25 million in losses after taxes over the last ten years.
- Carver's total shareholder returns have underperformed the S&P U.S. BMI Banks Index by 237% over ten years.
- Carver reported a $3 million loss for fiscal year 2024.
- The current board members hold only 0.32% of the company's shares, indicating a lack of alignment with shareholder interests.
- Carver recently sold 8% of its shares for $1 million, valuing the stock at $2.64 per share, significantly lower than its trading price of over $15 per share in November 2021.
Insights
This proxy battle represents a significant development for Carver Bancorp, highlighting severe operational challenges with
The activist investor Dream Chasers, with a
The current board's decision to sell
Carver's severe underperformance compared to peer minority-focused banks is particularly concerning. While other similar institutions maintain positive returns on assets and healthy efficiency ratios below
Dream Chasers' proposed strategy to expand into wealth management services and implement modern banking technology could help diversify revenue streams. However, execution risks exist given Carver's capital constraints and competitive market position. The proxy battle outcome will be important in determining whether the bank can successfully pivot to a more sustainable business model while maintaining its community-focused mission.
Confident Highly Successful, Independent Nominees Will Drive Shareholder Value Increase
Dream Chasers Letter Reminds Shareholders of -
Urges a "WITHOLD" Vote Against Carver's Non-Performing Directors
Sends Proxy Material and Encourages Vote for Change by Selecting Jeffrey "Jeff" Anderson and Jeffrey John Bailey on the BLUE Proxy Card to Give Carver Best Chance to Return to Profitability
Carver Lags Bank Index by
The full text of the letter is below:
Dear Fellow Carver Shareholders:
Dream Chasers believes it is time for Carver Bancorp shareholders to dream big again.
Now is the time to end years of poor stock price performance, operating losses into the millions of dollars and massive shareholder value destruction at Carver Bancorp, Inc. ("Carver", the "Bank", or the "Company") under the leadership of this current Board of Directors (the "Board").
To achieve this, Dream Chasers Capital Group ("Dream Chasers"), representing shareholders with a
We encourage you to vote FOR Mr. Jeffrey "Jeff" Anderson and Mr. Jeffrey Bailey on the enclosed BLUE proxy card to ensure the voice of the shareholder is heard by this Board.
Simply put, the Bank, under this Board, has lost millions of dollars, has a stock price down almost
Dream Chasers, like all fellow shareholders, wants to see Carver do well for the community, but change is needed. This Board has had ten years to produce but has failed miserably.
We believe our two nominees – Mr. Bailey and Mr. Anderson – have the record of success and experience necessary to help guide the Bank back to profitability and lead to what we hope is a significant increase in long term shareholder value.
A failed record: Millions in losses and abysmal share performance
Over the last decade, Carver has lost nearly
Total shareholder returns for the last ten years have been -
Carver has underperformed the bank index by
Total Shareholder Return3 | Carver | S&P | Relative Performance |
1-Year | 19 % | 64 % | -45 % |
3-Year | -89 % | 8 % | -97 % |
5-Year | -46 % | 48 % | -94 % |
10-Year | -79 % | 158 % | -237 % |
The Board is responsible for Carver's results and shareholders must hold them accountable.
An entrenched Board, disconnected from shareholder concerns
One cannot keep doing the same thing and expect a different result.
Carver's Board is dominated by members who have served over the entirety of the last decade's losses. Four of the seven Board members have been in place since at least 2013, one of whom was elected to the Board in 1997. These Board members have had ample opportunity to ensure a successful strategy, and they have failed to do so.
Members of the Board together own a total of only 16,5664 shares in the Company out of approximately 5.1 million outstanding, which is
The most recent example is the 2023 sale of approximately
Our nominees bring deep financial services expertise and shareholder perspective
Jeffrey "Jeff" Anderson is a retired banking executive who has served in CFO, chief of staff and corporate finance and planning roles at some of the most highly respected financial institutions in the world, including J.P. Morgan Chase, Bank of America, AIG and Goldman Sachs.
Mr. Anderson has driven retail branch strategy, technology implementation and expense management. At J.P. Morgan, he was CFO for the Northeast Region Retail Banking organization from 2018 until his retirement in 2020, which included over 800 banking centers with
Jeffrey John Bailey is Carver's largest individual shareholder. He holds over twenty times6 the shares of the current Board and will bring the voice of the shareholder to his Board service.
Mr. Bailey has been the CEO of Dunham Metal Processing since 2016, a specialized provider of metal components to the automotive, aerospace, maritime and medical equipment industries. Since joining the company in 1988, Mr. Bailey has helped drive a 25x increase in revenue at Dunham. His customers are in highly regulated and complex industries, and he will bring new perspectives and useful experience to the Board.
Shareholders should elect Mr. Anderson and Mr. Bailey to the Board to ensure Carver is focused on driving profitable growth and long-term shareholder value.
Dream Chasers' vision for growth
Dream Chasers' plan for growth at the "New Carver" is simple: adopt a strategy similar to those of the most successful banking institutions, such as J.P. Morgan. It is a model the latter has ridden to unprecedented profitability and returns for its shareholders. The model involves:
- Taking Carver's existing consumer banking services and establishing a broker dealer and other licenses so it can offer additional wealth building services, such as brokerage accounts
- Implementing a marketing and technology plan to drive customer and deposit acquisition
- Offering a broad array of wealth products which will attract customers and deposits and lead to new fees and commission revenues
Carver does not tie compensation to performance
In addition, Carver recently hired a new CEO, Donald Felix. Mr. Felix received a massive, guaranteed salary of
We encourage shareholders to vote AGAINST the advisory vote on executive compensation. This Board has handsomely rewarded executives that have presided over massive losses, and shareholders should not rubber-stamp that compensation.
Carver performs poorly when compared to peers
Perhaps unsurprisingly given its long-standing losses, Carver provides no peer set in its proxy materials for shareholders to analyze the Company's performance. We have looked at the performance of several other banks that have historically served African American communities. It is clear to us that Carver's focus on its community cannot be an excuse for such poor results.
Among these five banks that serve largely African American communities, Carver's results are by far the worst8. The Company has negative returns on its assets and an efficiency ratio over
Bank | Location | Return on Average Assets (2023) | Efficiency Ratio (2023) |
Carver Federal Savings Bank | -0.27 % | 106.4 % | |
Citizens Trust Bank | 2.06 % | 48.2 % | |
Industrial Bank | 0.29 % | 78.1 % | |
OneUnited Bank | 0.66 % | 86.1 % | |
The Harbor Bank of | 1.11 % | 82.0 % |
We believe in Carver's mission, and we must act to advance it
Carver was founded over 75 years ago to serve African American customers, many of
We know and love these communities. Mr. Anderson was born and raised in
The fundamental truth is that no company can fulfill its mission if it is losing money. And no publicly traded company can continue to foist such a massive decline in value on its shareholders, no matter how community minded.
We must turn Carver around, and we are deeply committed to doing so.
Sincerely,
Greg Lewis
Dream Chasers Capital Group
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
The information herein contains "forward-looking statements." Specific forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and include, without limitation, words such as "may," "will," "expects," "believes," "anticipates," "plans," "estimates," "projects," "potential," "targets," "forecasts," "seeks," "could," "should" or the negative of such terms or other variations on such terms or comparable terminology. Similarly, statements that describe our objectives, plans or goals are forward-looking. Forward-looking statements are subject to various risks and uncertainties and assumptions. There can be no assurance that any idea or assumption herein is, or will be proven, correct. If one or more of the risks or uncertainties materialize, or if any of the underlying assumptions of Dream Chasers Capital Group LLC ("Dream Chasers") or any of the other participants in the proxy solicitation prove to be incorrect, the actual results may vary materially from outcomes indicated by these statements. Accordingly, forward-looking statements should not be regarded as a representation by Dream Chasers that the future plans, estimates or expectations contemplated will ever be achieved.
Certain statements and information included herein may have been sourced from third parties. Dream Chasers does not make any representations regarding the accuracy, completeness or timeliness of such third party statements or information. Except as may be expressly set forth herein, permission to cite such statements or information has neither been sought nor obtained from such third parties. Any such statements or information should not be viewed as an indication of support from such third parties for the views expressed herein.
Dream Chasers disclaims any obligation to update the information herein or to disclose the results of any revisions that may be made to any projected results or forward-looking statements herein to reflect events or circumstances after the date of such information, projected results or statements or to reflect the occurrence of anticipated or unanticipated events.
CERTAIN INFORMATION CONCERNING THE PARTICIPANTS
Dream Chasers, Gregory Lewis, Shawn Herrera, Kevin Winters, Jeffrey Bailey (collectively, the Dream Chasers Beneficial Owners") and Jeffrey Anderson ("collectively with the Dream Chasers Beneficial Owners, the Participants") are participants in the solicitation of proxies from the shareholders of the Company for the 2024 Annual Meeting of Shareholders (the "2024 Annual Meeting"). On November 4, 2024, the Participants filed with the
As of the date hereof, the Dream Chasers Beneficial Owners beneficially own an aggregate of 497,774 shares of common stock of the Company, representing approximately
IMPORTANT INFORMATION AND WHERE TO FIND IT
DREAM CHASERS STRONGLY ADVISES ALL STOCKHOLDERS OF THE COMPANY TO READ ITS DEFINITIVE PROXY STATEMENT, ANY AMENDMENTS OR SUPPLEMENTS TO SUCH PROXY STATEMENT AND OTHER PROXY MATERIALS FILED BY DREAM CHASERS WITH THE SEC AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC'S WEBSITE AT WWW.SEC.GOV. THE DEFINITIVE PROXY STATEMENT AND OTHER RELEVANT DOCUMENTS ARE ALSO AVAILABLE ON THE SEC WEBSITE, FREE OF CHARGE, OR BY DIRECTING A REQUEST TO THE PARTICIPANTS' PROXY SOLICITOR, OKAPI PARTNERS LLC, 1212 AVENUE OF THE
Contacts
For Media:
Breitenbush Partners
Andrew Wilson, (773) 425-4991
awilson@breitenbushpartners.com
For Investors:
Okapi Partners
Bruce Goldfarb/Tony Vecchio
(877) 629-6356
(212) 297-0720
info@okapipartners.com
About Dream Chasers Capital Group
Dream Chasers Capital Group LLC is a
1 Reflects net income attributable to Carver Bancorp for the years 2014 to 2023, according to Company SEC filings and S&P Capital IQ Pro.
2 Income before taxes would have been -
3 Source: S&P Capital IQ Pro. Returns are for the period ended October 23, 2024, one day prior to the filing of Dream Chasers Capital Group's preliminary proxy statement.
4 As set forth in the Company's Definitive Proxy Statement filed by the Company with the SEC on October 31, 2024, which can be found at sec.gov/Archives/edgar/data/1016178/000110465924113051/tm2425801d1_defc14a.htm. Share count does not include options held by Board members. Percentages based upon an aggregate of 5,140,872 shares of common stock outstanding as of October 15, 2024, as reported in the Company's Definitive Proxy Statement.
5 As disclosed in the Form 8-K filed by the Company with the SEC on July 20, 2023, which can be found at sec.gov/Archives/edgar/data/1016178/000110465923082563/tm2321673d1_8k.htm
6 Bailey owns as of the Record Date of October 15, 2024 as set by the Company in its Definitive Proxy Statement filed with the SEC on October 31, 2024, an aggregate of 358,274 shares, however beneficially owns for purposes of Section 13(d) 259,474 shares.
7 As disclosed in the Form 8-K filed by the Company with the SEC on September 16, 2024, which can be found at sec.gov/Archives/edgar/data/1016178/000094337424000375/form8k_091124.htm
8 Source for data in table: S&P Capital IQ Pro. The group includes banks that historically serve African American communities and have assets under
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SOURCE Dream Chasers Capital Group
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